Ownership and regional economic impact: Wind development in the state of Minnesota

Arne Kildegaard

    Research output: Chapter in Book/Report/Conference proceedingChapter

    Abstract

    This study investigates the regional economic impact consequences of local vs. external ownership in the developing wind industry in the state of Minnesota (U.S.A.).We employ a realistic pro forma model of a financial "flip" structure, whereby a local equity group pairs withan outside, tax-motivated equity partner. The present value of residuals as well as the other O & M expendituresare annuitized and entered into a state- level input-output model. In order to bracket the range of possible outcomes, we run two sets of parameter assumptions ("pessimistic" and "optimistic") through the local equity group's pro forma, and subsequently the state-wide input-output model. According to these two scenarios we find that the impact on state-level value added is 3.1 and 4.5 times larger, respectively, compared with the impacts from the external ownership model. The impact onemployment is respectively 2.5 and 3.5 times larger.

    Original languageEnglish (US)
    Title of host publicationAdvances in Energy Research
    PublisherNova Science Publishers, Inc.
    Pages213-227
    Number of pages15
    Volume20
    ISBN (Electronic)9781634632010
    ISBN (Print)9781634631693
    StatePublished - Oct 1 2014

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